When the electricity grid is in high demand, energy prices surge for everyone. Utilities are actively looking to shift the load elsewhere, and companies are increasingly volunteering to reduce their demand to help avoid burnout. These demand response energy programs are gaining popularity because businesses earn money for helping alleviate stress on the grid.
To participate, companies must have on-site generation or other backup power supply such as solar energy. Businesses must be able to run on non-grid supplied power if they wish to continue operating during scheduled demand response events. Organizations also ideally have flexibility in their operations, such as cutting out a shift or not operating at certain times of the year when a demand response event is scheduled.
How it Works
Businesses generally get a one-day notice when utilities call for a demand response event, which tend to be scheduled around extreme weather (hot and cold) days. Participating companies are asked to reduce their energy load, which may include temporarily reducing or shutting down industrial processes, turning off lights in groups or sequences, shutting down large motors and compressors, reducing the use of HVAC systems, and starting back-up generation. As a result, commercial and industrial companies are rewarded for reducing energy demand instead of increasing supply during requested peak hours.
MD Energy Advisors is an energy broker that can help you get value for every megawatt hour you spend.
Contact us to learn about enrolling in a demand response program